CROCO WEST INDIES : revenue, balance sheet and financial ratios

In 2022, CROCO WEST INDIES achieves revenue of 650 k€. Over the period 2020-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +29.9%. Vs 2021, growth of +32% (492 k€ -> 650 k€). After deducting consumption (391 k€), gross margin stands at 259 k€, i.e. a rate of 40%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 71 k€, representing 11.0% of revenue. Warning negative scissor effect: despite revenue change (+32%), EBITDA varies by +6%, reducing margin by 2.7 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 46 k€, i.e. 7.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 25%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 58%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 255.00. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.8x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 90 days. Excellent situation: suppliers finance 90 days of the operating cycle (retail model). Inventory turnover is 176 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 176 days of revenue, i.e. 318 k€ to permanently finance. Over 2020-2022, WCR increased by +43%, requiring additional financing.

Based on 75 transactions of similar company sales in 2022, the value of CROCO WEST INDIES is estimated at 213 720 € (range 94 541€ - 431 641€). With an EBITDA of 71 497€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.52x (in line with sector norms). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.